Fourteenth meeting of the GCF Board (B.14)

The Board,

1. Decides to defer the consideration of the mobilization of private sector finance to progress the GCF forestry‐related results areas to its sixteenth meeting and to include this item in the work plan for 2017 for consideration by the Board accordingly;
2. Also decides to defer the alternative policy approaches for consideration at its seventeenth meeting;
3. Further decides to defer the presentation and consideration of the risk and investment guidelines to its sixteenth meeting;
4. Decides to defer the consideration of the pilot programme on mobilizing resources at scale to its fifteenth meeting;
5. Notes that the Head of the Integrity Unit is to develop the full set of policies relating to prohibited practices, anti-money laundering and countering the financing of terrorism and present these to the Board for its consideration as early as feasible in 2017 as a matter of urgency;
6. Further requests the Accreditation Committee in consultation with the Head of the Independent Integrity Unit to consider the best way to integrate such policies in the interim fiduciary standards, and present to the Board a proposal for its consideration as early as feasible in 2017 as a matter of urgency;
7. Decides to defer the review of the Gender policy and action plan to its sixteenth meeting;
8. Decides to conduct the review of the independent Technical Advisory Panel as part of the review of the initial proposal approvals process at B.15, in consultation with the Investment Committee;
9. Also decides to defer the consideration of the policies and procedures for contributions from philanthropic foundations and other non-public and alternative sources to the Initial Resource Mobilization process to its seventeenth meeting;
10. Also decides to defer the consideration of the approval of the administrative budget and work programme of the Secretariat for 2017-2019 to its fifteenth meeting;
11. Also decides to defer the consideration of the open competitive process for the selection of the permanent Trustee to its fifteenth meeting; and
12. Decides to continue its consideration of the operational guidelines for the simplified approval process in conjunction with the review of the initial approval process.

The Board, having reviewed document GCF/B.14/02 titled “Support for facilitating access to environmentally sound technologies and for collaborative research and development”,

1. Acknowledges that current GCF modalities enable support for technology development and transfer, including for facilitating access to environmentally sound technologies and for collaborative research and development;
2. Also acknowledges that guidance, rules, modalities referenced in paragraph (a) above, and procedures that are to be developed to implement the Paris Agreement may require later consideration by the Board, in line with guidance received from the Conference of the Parties to the United Nations Framework Convention on Climate Change and/or the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement once the Paris Agreement enters into force, consistent with Article 10, paragraph 5, of the Paris Agreement,
3. Encourages national designated authorities and focal points to access readiness support directly, or to collaborate with readiness delivery partners and accredited entities to submit readiness requests, concept notes, funding proposals and Project Preparation Facility proposals that will facilitate access to environmentally sound technologies, consistent with a country-driven approach and will encourage the involvement of relevant stakeholders, including vulnerable groups and addressing gender aspects
4. Decides to continue enhancing cooperation and coherence of engagement with the Technology Executive Committee and the Climate Technology Centre and Network, pursuant to decisions B.13/10 to B.13/12, including through requesting the Secretariat to provide recommendations on further steps to enhance cooperation and coherence for consideration by the seventeenth meeting of the Board, and in the context of the Fund’s operational framework on complementarity and coherence and the annual event with the thematic bodies of the United Nations Framework Convention on Climate Change;
5. Encourages national designated authorities/focal points to coordinate with the Climate Technology Centre and Network’s national designated entities in order to enhance cooperation; and
6. Requests the Secretariat to prepare a document for consideration by the Board at its seventeenth meeting identifying concrete options on how the GCF can support collaborative research and development in developing countries, in line with the operational modalities of the GCF, taking into account decisions B.13/11 and B.13/12, and in the context of operational framework for complementarity and coherence with climate finance delivery channels.

The Board, having considered document GCF/B.14/03 titled “Support for REDD-plus”,1

1. Recognizes the need to complement other sources and types of finance, and that the GCF can support the development of national REDD-plus strategies or action plans and investment plans, including through the Readiness and Preparatory Support Programme, 2 and that the fund can support the implementation of national REDD-plus strategies or action plans;3
2. Requests the Secretariat to develop for consideration by the Board at its sixteenth meeting:
   
   1. A request for proposals for REDD-plus results-based payments, including guidance consistent with the Warsaw Framework for REDD+ and other REDD-plus decisions under the United Nations Framework Convention on Climate Change, taking into account topics included in sections 4.1 and 4.2 of document GCF/B.14/03 and decision B.08/08; and
   2. Further guidance to support efforts by national designated authorities and focal points to engage with the GCF in early phases of REDD-plus using existing GCF modalities, tools and programmes; and
3. Also requests the Secretariat to implement, with the advice of the Co-Chairs, a process for stakeholder and expert input to support its work under this decision and provide a progress report to the Board at its fifteenth meeting.

The Board,

1. Decides by consensus to select Mr. Howard Bamsey for the post of the Executive Director of the Secretariat of the Green Climate Fund for a four-year term;
2. Requests the Co-Chairs to negotiate the terms of the contract that will be in accordance with the approved terms of reference (annex III to decision B.12/22) and the agreed performance management framework. The remuneration package will be negotiated by the Co‐Chairs, approved by the Board and publicly disclosed in line with the GCF Information disclosure policy;
3. Authorizes the Co‐Chairs to sign, on behalf of the GCF, the employment contract between Mr. Bamsey and the GCF; and
4. Confirms that Mr. Javier Manzanares will continue as the Executive Director ad interim until Mr. Bamsey takes office.

The Board,

Requests the Executive Director Selection Committee to develop performance criteria and measurement procedures for the approval of the Board as a decision taken between meetings.

The Board, having considered document GCF/B.14/05/rev.01 titled “Country ownership guidelines”,

Requests Mr. Colin Young (Board member, Belize) and Ms. Kate Hughes (alternate Board member, United Kingdom of Great Britain and Northern Ireland), to consult with the Board intersessionally with a view to presenting revised country ownership guidelines for consideration by the Board at its fifteenth meeting.

The Board, having considered document GCF/B.14/07 titled “Consideration of funding proposals”,

1. Notes that the review of the initial proposal approval process is in progress, in accordance with decision B.11/11, paragraph (j), and that the Board will consider the outcome of the review at its fifteenth meeting, in accordance with decision B.12/13, paragraph (a);
2. Requests the Co-Chairs and Executive Director ad interim, with guidance from the Budget Committee, to address the Secretariat capacity limitations in the Mitigation and Adaptation and Private Sector Facility divisions, by expediting, in a transparent manner, staff appointments, consultant appointments and secondments in key thematic areas;
3. Decides, in line with decision B.11/11, to conclude the review of the initial proposal approval process, in particular to expedite progress on strengthening and scaling up the GCF pipeline; streamlining and improving the transparency of the proposal approval process; reviewing how concept notes should work within the project cycle; and strengthening project/programme eligibility criteria;
4. Also decides to approve the operational guidelines of the simplified proposal approval process at its fifteenth meeting in line with decision B.13/20;
5. Notes that the Investment Committee is already working to bring forward proposals on indicative minimum benchmarks for the seventeenth meeting of the Board and will propose terms of reference for the review of independent Technical Advisory Panel at the fifteenth meeting of the Board;
6. Expresses concern regarding the number of conditional project approvals to date;
7. Urges the Secretariat, national designated authorities and focal points, and accredited entities to intensify efforts to strengthen the quality of funding proposals, in order to demonstrate greater potential to adapt to the impacts of climate change and/or to limit and reduce greenhouse gas emissions in the context of promoting a paradigm shift;
8. Urges direct access entities to make use of the Project Preparation Facility to strengthen their proposals in order to demonstrate greater potential to adapt to the impacts of climate change and/or to limit and reduce greenhouse gas emissions in the context of promoting a paradigm shift as indicated in paragraph (g) above;
9. Approves, on an exceptional basis, the funding proposals (FP018-027) conditional on modification to the design of the relevant project or programme, as further set out in paragraphs (r-aa) below, and subject to paragraph (l) below, and requests the Secretariat to specifically report to the Board on the status of fulfilment of conditions in annex I at the seventeenth meeting of the Board;
10. Requests the Secretariat to report to the Board at each meeting on the status of the fulfilment of all conditions decided by the Board in its approval of the relevant projects or programmes, and to seek further guidance from the Board in the event that the Secretariat determines that any such condition is technically, financially or legally unimplementable;
11. Takes note of the views expressed on programmatic proposals, including those related to the need to seek a balance of national, regional and international programmatic funding proposals. Requests the Co-Chairs to continue to consult on the programmatic approach with a view to conclude the policy guidelines for programmatic approach for consideration at the fifteenth meeting of the Board, noting that approvals on programmatic funding proposals at the fourteenth meeting of the Board do not prejudge the Board’s consideration of these policy decisions;
12. Confirms that only countries that have provided a letter of no-objection for FP025 are included in the approved programme;
13. Requests the Secretariat to modify the funding proposal template to accommodate the additional criteria of the enhanced direct access pilot phase, as specified in annex I to decision B.10/04;
14. Also requests the Secretariat to ensure that future proposals under the enhanced direct access modality meet all of the required elements of the enhanced direct access pilot and provide such evidence within the modified funding proposal template, as requested in paragraph (m) above;
15. Further requests the Secretariat to explore options for a mechanism that will draw on appropriate scientific and technical advice, as initially envisaged by decision B.04/09, paragraph (d);
16. Emphasizes the approach taken to approving funding proposals at the fourteenth meeting of the Board does not constitute a precedent;
17. Takes note of the following funding proposals:
    
    1. Funding proposal 018 titled “Scaling-up of glacial lake outburst flood (GLOF) risk reduction in Northern Pakistan” by the United Nations Development Programme, as contained in document GCF/B.14/07/Add.01 and Add.17 (limited distribution);
    2. Funding proposal 019 titled “Priming financial and land-use planning instruments to reduce emissions from deforestation” by the United Nations Development Programme, as contained in document GCF/B.14/07/Add.02 and Add.17;
    3. Funding proposal 020 titled “Sustainable energy facility for the Eastern Caribbean” by the Inter-American Development Bank, as contained in document GCF/B.14/07/Add.03 and Add.17;
    4. Funding proposal 021 titled “Senegal integrated urban flood management project” by Agence Française de Développement, as contained in document GCF/B.14/07/Add.04 and Add.17);
    5. Funding proposal 022 titled “Development of argan orchards in degraded environment” by the Agency for Agricultural Development of Morocco, as contained in document GCF/B.14/07/Add.05 and Add.17;
    6. Funding proposal 023 titled “Climate resilient agriculture in three of the vulnerable extreme northern crop growing regions (CRAVE)” by the Environmental Investment Fund, as contained in document GCF/B.14/07/Add.06 and Add.17;
    7. Funding proposal 024 titled “Empower to adapt: creating climate change resilient livelihoods through community-based natural resource management in Namibia” by the Environmental Investment Fund, as contained in document GCF/B.14/07/Add.07 and Add.17;
    8. Funding proposal 025 titled “Sustainable energy financing facilities (SEFF)” by the European Bank for Reconstruction and Development, as contained in document GCF/B.14/07/Add.11;
    9. Funding proposal 026 titled “Sustainable landscapes in Eastern Madagascar” by the Conservation International Foundation and the European Investment Bank, as contained in document GCF/B.14/07/Add.12; and
    10. Funding proposal 027 titled “Universal green energy access programme (UGEAP)” by Deutsche Bank AktienGesellschaft, as contained in document GCF/B.14/07/Add.13.
18. Approves funding proposal 018 for the amount of USD 36,960,000, submitted by the United Nations Development Programme, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
19. Approves funding proposal 019 for the amount of USD 41,172,739, submitted by the United Nations Development Programme, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
20. Approves funding proposal 020 for the amount of USD 80,000,000, submitted by the Inter- American Development Bank, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
21. Approves funding proposal 021 for the amount of EUR 15,000,000, submitted by Agence Française de Développement, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
22. Approves funding proposal 022 for the amount of USD 39,292,600, submitted by the Agency for Agricultural Development of Morocco, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
23. Approves funding proposal 023 for the amount of USD 9,500,000, submitted by Environmental Investment Fund, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
24. Approves funding proposal 024 for the amount of USD 10,000,000, submitted by the Environmental Investment Fund, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.17;
25. Approves funding proposal 025 for the amount of up to USD 378,000,000 equivalent, of which up to USD 84,000,000 will be provided in euro, submitted by the European Bank for Reconstruction and Development, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.114;
26. Approves funding proposal 026 for the amounts of USD 18,500,000 and up to USD 35,000,000 respectively, jointly submitted by the Conservation International Foundation and European Investment Bank subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.125, taking note of potential future reflows from activities in Madagascar undertaken by European Investment Bank to the activities in the country to be undertaken by the Conservation International Foundation subject to subsequent Board approval of a funding proposal to be submitted by the latter closer to the date of such reflows;
27. Approves funding proposal 027 for the amount of USD 80,000,000, submitted by Deutsche Bank AktienGesellschaft, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.14/07/Add.136;
28. Reaffirms that pursuant to annex VII to decision B.07/03, the Executive Director or his designee is authorized to negotiate and enter into legal agreements on behalf of the Green Climate Fund with accredited entities and other parties involved in respect of funding proposals approved by the Board, taking into account any condition set by the Board in this decision and in the decision accrediting the relevant accredited entity; and
29. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the interim policy on fees for accredited entities adopted by the Board pursuant to decision B.11/10.

The Board, having considered document GCF/B.14/09 titled “Strategy on accreditation”,

1. Takes note of the draft strategy on accreditation contained in annex II;
2. Requests the Accreditation Committee in consultation with the Secretariat, the Accreditation Panel and national designated authorities, and taking into consideration previous decisions of the Board, in particular decision B.08/10 on country ownership and decision B.12/20 on the strategic plan for the GCF, to continue to elaborate on the draft strategy for its further consideration at the fifteenth meeting of the Board;
3. Acknowledges the recommendation of the Accreditation Committee and the Accreditation Panel to further develop the accreditation framework, which should consider lessons learned and the discussions of the Board at its fourteenth meeting;
4. Decides that future accreditation decisions by the Board should aim to bring forward accredited entities that fill the mandate on balance, diversity and coverage and advance the objectives of the GCF, and to that end:
   
   1. Decides to request the Accreditation Panel and the Secretariat to establish a prioritization of entities applying for accreditation, and prioritizes in 2016 and 2017 the following, not listed in any particular order of priority:
      
      1. National direct access entities;
      2. Entities in the Asia-Pacific and Eastern European regions;
      3. Private sector entities, in particular those in developing countries, seeking a balance of diversity of entities in line with decisions B.09/07, paragraph (g) and decision B.10/06, paragraph (h);
      4. Entities responding to requests for proposals issued by the GCF, for example including a pilot phase for enhancing direct access; a pilot programme to support micro-, small-, and medium-sized enterprises; and a pilot
      5. programme to mobilize resources at scale in order to address adaptation and mitigation;
      6. Entities seeking fulfilment of conditions for accreditation; and
      7. Entities requesting upgrades; and
   2. Requests the Secretariat, in consultation with the Accreditation Committee and Accreditation Panel, to consider how to refine the method and criteria for prioritization for consideration of the Board at the sixteenth meeting of the Board;
5. With a view to increasing the efficiency of the accreditation process:
   
   1. Requests the Secretariat, in consultation with the Accreditation Panel, to develop modalities for the use of third-party evidence for review by the Board by its sixteenth meeting;
   2. Decides to review the fast-track process as defined in decisions B.08/03, B.10/06 and B.12/30 by the twentieth meeting of the Board; and
   3. Recalling decision B.08/03, paragraphs (f) and (k), requests the Accreditation Panel, with the support of the Secretariat, under the guidance of the Accreditation Committee, to elaborate the following elements for decision by the Board at its seventeenth meeting in 2017, an assessment, including a gap analysis, of the Adaptation Fund’s Environmental and Social Policy (approved in November 2013 and amended in March 2016) and Gender policy (approved in March 2016) in line with the GCF interim environmental and social safeguards and gender policy with recommendations on their potential accreditation or fast-tracking;
6. Decides to commence review of the GCF initial fiduciary standards in 2017 in accordance with decision B.07/02; and
7. Requests the Accreditation Panel to report at the fifteenth meeting of the Board on progress made towards establishing a baseline for the whole portfolio of accredited entities in accordance with decision B.12/30.

The Board, having considered document GCF/B.14/10 titled “Consideration of accreditation proposals – overview of accreditation”,

1. Takes note with appreciation of the efforts that accredited entities are making in order to address their accreditation conditions as listed in annex III;
2. Also takes note of the accredited entities with accreditation conditions fulfilled and closed as determined by the Accreditation Panel and listed in annex III;
3. Further takes note that, pursuant to decision B.08/03, paragraph (k), the Secretariat, in consultation with the Accreditation Panel, is proposing that the eligibility to apply under the fast-track accreditation process be extended to those entities listed in annex IV; and
4. Decides that those entities referred to in annex IV are also eligible to apply under the fast- track accreditation process for the standards of the GCF in accordance with decision B.08/03, paragraph (f), for entities accredited by the Adaptation Fund, and decision B.08/03, paragraph (g), for entities under the Directorate-General for International Development and Cooperation.

The Board, having considered document GCF/B.14/15 titled “Consideration of accreditation proposals – entities recommended at the thirteenth meeting of the Board”,

1. Takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant annexes for the following applicants:
   
   1. Applicant 035 (APL035) is the Banque Ouest Africaine de Développement (West African Development Bank, BOAD) based in Togo, as contained in annex V;
   2. Applicant 036 (APL036) is the Caribbean Development Bank (CDB) based in Barbados as contained in annex VI;
   3. Applicant 037 (APL037) is XacBank LLC (XacBank) based in Mongolia, as contained in annex VII; and
   4. Applicant 038 (APL038) is the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) based in Germany, as contained in annex VIII; and
2. Accredits APL035, APL036, APL037 and APL038 pursuant to paragraph 45 of the Governing Instrument for the GCF, and subject to, and in accordance with, the assessment by the Accreditation Panel contained in the relevant annexes for each of the applicants. A summary of the recommended accreditation types and conditions and/or remarks, if any, for each applicant is contained in annex IX.

The Board, having considered document GCF/B.14/16 titled “Consideration of accreditation proposals – entities recommended at the fourteenth meeting of the Board”,

1. Takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant annexes for the following applicants:
   
   1. Applicant 039 (APL039) is the South African National Biodiversity Institute (SANBI) based in South Africa, as contained in annex X;
   2. Applicant 040 (APL040) is the Food and Agriculture Organization of the United Nations (FAO) based in Italy, as contained in annex XI;
   3. Applicant 041 (APL041) is the International Fund for Agricultural Development (IFAD) based in Italy, as contained in annex XII; and
   4. Applicant 042 (APL042) is the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) based in the Netherlands, as contained in annex XIII; and
2. Accredits APL039, APL040, APL041 and APL042 pursuant to paragraph 45 of the Governing Instrument for the GCF, and subject to, and in accordance with, the assessment by the Accreditation Panel contained in the relevant annexes for each of the applicants. A summary of the recommended accreditation types and conditions and/or remarks, if any, for each applicant is contained in annex XIV.

Two limited distribution decisions were adopted under this agenda sub-item:

1. DECISION B.14/12 on accreditation master agreements and funded activity agreements; and
2. DECISION B.14/13 on the approval of the accreditation master agreement executed with the United Nations Development Programme.

The Board, having considered document GCF/B.14/11 titled “Interim Trustee Review”,

Takes note of the report on review of the Interim Trustee and its findings as contained in annex XV.

The Board, having reviewed document GCF/B.14/13 titled “Date and venue of the following meeting of the Board”,

1. Affirms that the fifteenth meeting of the Board will take place from Tuesday, 13 December 2016, to Thursday, 15 December 2016;
2. Also affirms that the fifteenth meeting of the Board will take place in Apia, Samoa, subject to the conclusion of the required legal agreement at least six weeks before the meeting starts; and
3. Requests the Secretariat to continue its consultations with Samoa with a view to concluding the required legal agreement and to making the necessary arrangements (annex XVI).